MINUTES SENATE FINANCE COMMITTEE May 3, 1994 9:10 a.m. TAPES SFC-94, #80, Side 2 (238-028) CALL TO ORDER Co-chair Drue Pearce convened the meeting at approximately 9:10 a.m. PRESENT In addition to Co-chairs Pearce and Frank, Senators Kelly, Kerttula, and Sharp were present when the meeting commenced. Senator Jacko arrived soon after it began. Senator Rieger arrived as it was in progress. ALSO ATTENDING: Representative Con Bunde; Representative Peter Kott; Dave Kellyhouse, Director, Division of Wildlife Conservation, Dept. of Fish and Game; Juanita Hensley, Chief, Driver Services, Dept. of Public Safety; Patti Swenson, aide to Representative Bunde; Jeanne Larson, aide to Representative Martin; and aides to committee members and other members of the legislature. SUMMARY INFORMATION HB 128 - EARLY ACKNOWLEDGEMENT OF PATERNITY CS SSHB 128 (Fin) was REPORTED OUT of committee with a $43.3 fiscal note from the Dept. of Health and Social Services (Vital Statistics) and a zero note for AFDC. HB 232 - BOW HUNTING STAMP & BOW HUNTING SAFETY SCS HB 232 (Res) was REPORTED OUT of committee with a fiscal note from the Dept. of Fish and Game showing operating costs of $5.0 and revenues of $9.1. HB 239 - RAFFLE OR AUCTION OF BIG GAME PERMITS SCS CSHB 239 (Res) was REPORTED OUT of committee with a fiscal note from the Dept. of Fish and Game showing operating costs of $1.0 and revenues of $25.0. HB 328 - PAY MOTOR VEHICLE FEES BY CREDIT CARD SCS CSHB 328 (Fin) was REPORTED OUT of committee with a fiscal note from the Dept. of Public Safety showing $225.0 in operating costs and $322.5 in revenues. HB 342 - TOURISM MARKET.COUNCIL/CRUISE SHIP PROMOS SCS CSHB 342 (Fin) was REPORTED OUT of committee with a zero fiscal note from the Dept. of Commerce and Economic Development. CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 128(FIN) Act relating to paternity determinations and acknowledgements. Co-chair Pearce directed that CS SSHB 128 (Fin) be brought back before committee. She noted that questions were raised when the bill was previously heard and advised of her understanding that those questions have now been satisfied. The Co-chair then queried members, asking if anyone wished to offer an amendment. Senator Kelly acknowledged that, as a result of receipt of additional information, he was satisfied with the bill. Co-chair Pearce called for further discussion. None was forthcoming. Senator Kerttula MOVED that CS SSHB 128 (Finance) pass from committee with individual recommendations. No objection having been raised, CS SSHB 128 (Finance) was REPORTED OUT of committee with a zero fiscal note from the Dept. of Health and Social Services (AFDC) and a $34.3 note from Dept. of Health and Social Services (Vital Statistics). Co- chairs Pearce and Frank and Senators Kelly and Jacko signed the committee report with a "do pass" recommendation. Senators Kerttula, Rieger, and Sharp signed "no recommendation." HOUSE BILL NO. 232 An Act relating to a bow hunting tag and bow hunting safety; and providing for an effective date. Co-chair Pearce directed that HB 232 be brought on for discussion and referenced the Senate Resources version, a memorandum and sponsor statement from Representative Bunde, a sectional analysis from Legislative Legal Services, correspondence in support of the legislation, and accompanying fiscal notes. Senator Kelly raised questions concerning the budgeting of $45.0 for the bow hunting education program. Senator Kerttula voiced support for the program but stressed that it should be self- supporting and also cover protection efforts. PATTI SWENSON, aide to Representative Bunde, came before committee. She deferred questions relating to the fiscal note to the department. DAVE KELLYHOUSE, Director, Division of Wildlife and Conservation, Dept. of Fish and Game, explained that the department's hunter education program is supported by Pittman/Robertson and fish and game funds. The department attempts to refrain from charging for the course to encourage greater firearm safety and hunter education. An excise tax on bows and arrows provides a portion of the funding. The proposed bill would help defray the cost. Co-chair Pearce inquired regarding the cost of developing the safety program. Mr. Kellyhouse advised that he could not speak to the actual cost since the program relies heavily upon certified volunteer instructors through the International Bow Hunter Association. A full-time range 18 position and a clerk typist run the program. The cost of salaries is $100.0 plus a small operating budget of about $30.0. With that funding, the program trains approximately 1,000 general hunter education students and qualifies close to 1,000 bow hunters. In response to further questions from Senator Kelly, Mr. Kellyhouse explained that bow hunter safety is only a portion of the much broader hunter education program. The majority of those enrolled in the education course are rifle hunters. Senator Kerttula asked if it would cost more to implement the program than it is likely to generate in revenues. Mr. Kellyhouse responded that he did not believe so. He said that the department would not upscale the program in excess of revenues. Senator Kerttula MOVED for passage of SCS HB 232 (Res) with individual recommendations. No objection having been raised, SCS HB 232 (Res) was REPORTED OUT of committee with a fiscal note from the Dept. of Fish and Game showing operating costs of $5.0 and revenues of $9.1. Co-chair Pearce and Senators Jacko and Sharp signed the committee report with a "do pass" recommendation. Senators Kelly, Kerttula, and Rieger signed "no recommendation." Co-chair Frank was temporarily absent from the meeting and did not sign. HB 239 CS FOR HOUSE BILL NO. 239(RES) am Act relating to raffles and auctions of certain permits to take big game; and providing for an effective date. Co-chair Pearce directed that CSHB 239 (Res)am be brought on for discussion. REPRESENTATIVE CON BUNDE, sponsor of the legislation, came before committee. He observed that the proposed bill is anticipated to generate revenues as high as $250.0, annually, for the fish and game fund. The program mirrors those in eleven western states. Outdoorsmen purchase "these memorial kinds of tags" with the "notion of giving something back to the sport that they have enjoyed." The thrust of the bill is to provide a positive revenue flow in the face of declining budgets. Co-chair Pearce inquired concerning changes effected in the Senate Resources bill. Representative Bunde advised that they address concerns raised by both the department and outdoor groups. Changes are minor. One would allow the existing safeguard program, which deals with fish and game violations, to retain a larger percentage of the proceeds of a raffle the program presently conducts. A provision was also added allowing an in-state organization to "get one of the tags." The department will select the organization based on ability to generate a positive cash flow. Other changes are technical. Senator Sharp MOVED that SCS CSHB 239 (Resources) pass from committee with individual recommendation. No objection having been raised, SCS CSHB 239 (Res) was REPORTED OUT of committee with a fiscal note from the Dept. of Fish and Game showing a cost of $1.0 and $25.0 in revenue. All members signed the committee report with a "do pass" recommendation, with the exception of Senator Kerttula who signed "no recommendation." CS FOR HOUSE BILL NO. 328(FIN) An Act allowing motor vehicle registration and licensing fees to be paid by credit card. Co-chair Pearce directed that CSHB 328 (Fin) be brought on for discussion and advised that it would allow for payment of motor vehicle fees via credit card. Senator Kelly asked why the bill would incur a cost. Co-chair Pearce responded "because the credit card company would get 1-1/2%." JEANNE LARSON, aide to Representative Martin, came before committee. She explained that the bill allows individuals to pay driver license and motor vehicle registration fees by credit card and authorize use of the credit card via telephone. She deferred further comment to department staff. Co-chair Pearce asked if consideration had been given to allowing the department to charge the extra percentage so that the bill would be revenue neutral. Ms. Larson observed that it was mentioned in passing but not dealt with in substantial detail. Senator Rieger pointed to new language within the bill and asked that the department comment. JUANITA HENSELY, Chief, Driver Services, Dept. of Public Safety, said that the department is comfortable with the mandate to establish the procedures and fees prescribed for credit card payment by telephone. Speaking to questions relating to raising the fee to cover the credit card cost, Ms. Hensley referenced discussion of the issue in the House. The House was adamant in its decision not to increase motor vehicle fees to cover credit card charges. Co-chair Pearce asked if it was necessary to provide statutory authority to allow for use of credit cards. Ms. Hensley said that aside from the Marine Highway System, no other agency accepts credit cards. The reason for the proposed legislation is to receive the $225.0 appropriation for credit card costs. It represents a means of fixing the funding in the budget. In response to a question from Senator Rieger, Ms. Hensley explained that the department has been in contact and negotiations with banks. The Alaska Bankcard Center is the clearing house for all credit cards. It is the entity that has offered the 1-1/2%. It is the department's intent to allow for use of more than one credit card if the 1-1/2% can be negotiated. Senator Rieger voiced a preference for use of "may" rather than "shall" in new language. He expressed concern that controversy would arise over which credit cards are allowed and which are not. Senator Kelly inquired regarding the net result of levying a $1.00 credit card transaction fee. Ms. Hensely advised of estimates that 40 to 50% of those renewing licenses would use credit cards in lieu of cash. The state registers approximately 605,000 vehicles annually and issues 200,000 identification cards and driver licenses each year. The $1.00 fee would more than cover the cost. Senator Kelly asked if it would be possible to register an automobile by telephone. Ms. Hensley responded affirmatively and spoke to the workings of a dial-in system in Wisconsin. Senator Kelly voiced support for that approach. Pointing to language in the bill, Senator Rieger noted that it appears individuals will pay an additional $10 unless registration is conducted by mail. Ms. Hensley advised that the $10 fee was intended to cut down on the number of people actually coming to registration offices. Payment by credit card via telephone would accomplish the same end. Co-chair Pearce advised that bill language stating "that additional fees shall be added for registration not conducted by mail" does not exempt telephone transactions from the $10 fee. Senator Sharp pointed to language at lines 8 through 9 and noted that the department may waive the $10.00 fee, by regulation, and suggested that an exception could be made for payment by telephone. Ms. Hensely voiced department intent to waive the $10.00 for credit card renewals conducted via telephone. Senator Kelly proposed that a $1.00 fee be levied for credit card transactions. Co-chair Frank voiced his understanding that an individual who renews a registration or license at a motor vehicle office and utilizes a credit card for payment would pay a fee of $11.00. He then suggested that payment by credit card could save processing costs. Discussion of the existing $10.00 fee and proposed fees for credit card use followed. A number of alternative approaches were proposed. Co-chair Pearce raised concern that changes in the $10.00 fee could not be made under the existing bill title. Senator Kelly MOVED to levy a $5.00 fee on transactions by credit card via telephone. He advised that the fee would cover the $225.0 cost shown on the fiscal note. In response to a question from Senator Sharp asking if the $10.00 fee would apply in addition to the $5.00 charge, Senator Kelly commented that the $5.00 fee would encourage individuals to use the phone for renewal rather than stand in line at a registration office. He reiterated earlier comments that the department would waive the $10.00 charge for telephone transactions. Ms. Hensley concurred. Co-chair Pearce called for a show of hands on the motion. The amendment was ADOPTED on a vote of 4 to 2. The department was requested to provide a new fiscal note for the bill, including an estimate of revenues to be generated by the $5.00 fee. Senator Kelly MOVED that SCS CSHB 328 (Finance) pass from committee with individual recommendations. No objection having been raised, SCS CSHB 328 (Finance) was REPORTED OUT of committee with a fiscal note from the Dept. of Public Safety showing a cost of $225.0 and revenue of $322.5. All members signed the committee report with a "do pass" recommendation with the exception of Senator Kerttula who signed "no rec." CS FOR HOUSE BILL NO. 342(FIN) am An Act relating to the Alaska Tourism Marketing Council; increasing to at least 25 percent the share of the council's expenses that must be paid through contributions by an association that contracts to jointly manage the council; required disclosures in promotions on board tourism cruise ships; and providing for an effective date. Co-chair Pearce directed that CSHB 342 (Finance)am be brought on for discussion and noted that the Senate version, SB 341, was reported out of committee last week. The House bill contains provisions from Senate "gaming on cruise ships" legislation (SB 370), and it also extends the Alaska Tourism Marketing Council to December 30, 1998. SB 341 extended the Council to 1996 to conform with SB 370. REPRESENTATIVE PETE KOTT, sponsor of the legislation, came before committee. He voiced need for the 1998 sunset date for the Council since it is more efficient for the legislature to extend the date as long as possible. The four-year period is also well established as a sunset date for numerous boards and commissions. It would also send a stronger message to ATMC supporters and those involved in marketing and sales programs. The Dept. of Commerce and Economic Development is supportive of the bill as currently written. Senator Rieger referenced language relating to disclosure of promotions and advised of his understanding that dollar amounts would not have to be provided. Representative Kott concurred. Disclosure would merely have to indicate that one is paying someone to "promote your business in port." Senator Rieger asked if that type of promotion would include a "kickback" on the fee charged by the shoreside operator or merely an advertising payment. Representative Kott voiced his recollection that it includes the "kickback." Senator Sharp noted an ongoing problem with ATMC in that, over a six-year period, the Council has been unable to reach agreement and come forward with a method of offsetting general funds. He suggested that the sunset date should be "kept as short as possible" to force a decision by the Council which cannot continue to be funded from state general funds. Senator Sharp then MOVED to change the sunset date from December 30, 1998, to December 30, 1996. Senator Rieger noted that statutory sunset dates include a grace year. A sunset date of 1996 would allow the Council to operate into 1997. Co-chair Pearce called for a show of hands on the motion. The motion carried on a vote of 3 to 2, and the amendment was ADOPTED. Co-chair Frank MOVED that SCS CSHB 342 (Finance) pass from committee with individual recommendations. No objection having been raised, SCS CSHB 342 (Finance) was REPORTED OUT of committee with a zero fiscal note from the Dept. of Commerce and Economic Development. Co-chairs Pearce and Frank signed the committee report with a "do pass" recommendation. Senators Kelly, Kerttula, Rieger, and Sharp signed "no recommendation." Senator Jacko was absent from the meeting and did not sign. ADJOURNMENT The meeting was adjourned at approximately 10:05 a.m.